Real Estate Talk:
September market strategy

Pricing strategy for the September market post-pandemic

By Joseph Marovitch

July 7, 2021

The market is hot according to the Quebec Professional Association of Real Estate brokers (QPAREB), as defined in today’s market as high demand and low supply resulting in higher than average market prices. In June, real estate sales dropped due to many deciding to renovate rather than sell their property only to purchase another property at inflated prices.

On the assumption that vaccines are working and another wave of the virus will not occur, we should see more homes listed as of September. In a scenario where inventory rises along with interest rates, a shift will occur where the current seller’s market will become a buyer’s market. With more inventory and rising interest rates, buyers will be more cautious with their criteria and have more homes to choose from. Sellers may have to compromise on conditions and price to sell their property.

In June, real estate sales dropped due to many deciding to renovate rather than sell their property only to purchase another property at inflated prices.

In many cases this past year, brokers and their clients priced their homes at market according to standard market evaluation practice. However, as there appeared to be ten buyers for every house, the buyers drove the price higher and higher, a natural process in a free market according to the rules of supply and demand.

However, as we enter the last phases of the pandemic, some sellers do not realize the reason prices skyrocketed. Without an understanding of supply and demand and by only following the price trend, some sellers may overprice their property in the September market and lose time and buyers as winter approaches. Once winter arrives, it is always more difficult to sell homes. Most people do not want to move in winter if possible. It tends to be more expensive, time-consuming and work-intensive. After some time, sellers will reduce their price, but value can diminish over time if a property is on the market too long.

Therefore, if inventory and interest rates rise as expected in the Fall, it may be wise to follow the tried-and-true method of market evaluation to price a property by comparing similar property sales over the past year rather than following a recent trend and speculating future prices will rise based on price rise during the pandemic.

‘Without an understanding of supply and demand and by only following the price trend, some sellers may overprice their property in the September market and lose time and buyers as winter approaches.’

For further information on pricing, market strategy and the selling process leave your comments below or feel free to contact me.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: Preparing for the fall market

State of the market

According to the Quebec Professional Association of Real Estate brokers (QPAREB) in a recent article in the Montreal Gazette, spiking real estate prices and low inventory have caused a 7% decrease in real estate sales in June. Montreal listings dropped by 16% and prices rose by 29%.

It is still a seller’s market, and there are buyers out there following the trend and buying high. For those selling during the summer, it is still possible to sell at high values but the audience of buyers is diminishing as we approach the construction holidays. With the past year being as difficult as it was, many people do not have real estate in mind. What is foremost is taking time off to decompress. Expect the market to slow down in August but restart in September.

‘For those selling during the summer, it is still possible to sell at high values but the audience of buyers is diminishing as we approach the construction holidays.’

Do keep in mind that, without pandemic restrictions and with higher interest rates approaching, there may be a spike in inventory come September which means we will see a change in direction as the market will favour buyers over sellers!

Have a great week.

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